This document discusses quality auditing and the implementation of total quality management (TQM) in manufacturing and service sectors. It defines quality audits and describes the purposes of internal and external audits. Internal audits verify an organization's compliance and seek opportunities for improvement, while external audits are required for certification. TQM practices like continuous improvement, customer focus, and employee involvement benefit both sectors. A comparison of surveys found top management commitment, customer satisfaction, training, and human resources were key strategies for both, while processes, quality systems, and benchmarking were more important for manufacturing versus quality culture for services.

1. RME-085
Total Quality Management
Topic: Quality Auditing and TQM implementation in manufacturing and service sectors
By:
Dr. Vinod Kumar Yadav
Department of Mechanical Engineering
G. L. Bajaj Institute of Technology and Management
Greater Noida
Email: vinod.yadav@glbitm.org

2. Quality Audit for ISO certifications
Note: The contents used in this slide is being used for academic purposes only, and is intended only for students registered in B.Tech Mechanical Engineering at AKTU Lucknow in VIII
semester 2019-20, and is not intended for wider circulation.
Quality audit
- Process of systematic examination of a quality system
carried out by an internal or external quality auditor[1].
- Important part of an organization's QMS.
- Key element in the ISO quality system standard (ISO
9001 etc.)
- Performed at predefined time intervals.
- Verifies the compliance of an organization with set QMS
goals and processes.
- Objective: Continuous process improvement
(review and verification)
- Suggest ways of improvement.
Two types of auditing are done:
1. Audits by internal staff trained for this process (Internal
audits).
2. Auditing by an external certification body (External
audit).
- An ISO Audit is an official assessment
sanctioned by the International
Organization for Standardization (ISO) to
determine if a company fulfills a set
criteria, usually for developing a
product, or rendering a service.
- An ISO certification gives merit to
companies, and protects consumers by
ensuring that international
safety, reliability, and quality
standards are met.

3. Internal Quality Audit
Note: The contents used in this slide is being used for academic purposes only, and is
intended only for students registered in B.Tech Mechanical Engineering at AKTU Lucknow in
VIII semester 2019-20, and is not intended for wider circulation.
Definition: Internal auditing (First party audit) is an
independent, objective assurance and consulting activity
designed to add value and improve an organization’s
operations. It helps an organization accomplish its objectives
by bringing a systematic, disciplined approach to evaluate and
improve the effectiveness of risk management, control and
governance processes [2].
Objectives [3]:
- Assess the effectiveness of organization’s QMS and overall
performance.
- Verify the compliance of the events with plans.
- Ensuring compliance to the requirements of internal,
international and industry standards & regulations, and
customer requirements.
- To determine the effectiveness of the implemented system in
meeting specified objectives (quality, environmental,
financial).
- To explore opportunities for improvement.
- To meet statutory and regulatory requirements.
- To provide feedback to Top Management.
Fair
presentation
Ethical
conduct
Principles
of
internal
auditing
Professional
care
Independence
Evidence
based
approach
Principles of internal auditing [3]

4. Types of Internal Quality Audit
Note: The contents used in this slide is being used for academic purposes only, and is intended only for students registered in B.Tech Mechanical Engineering at AKTU Lucknow in VIII semester 2019-20, and is not intended for
wider circulation.
- Arise from standards like ISO 9001:2015, as well as
customer or regulatory requirements.
System Audits: (Check list)
- Focuses on the organization’s QMS as a whole
- Compares the planning activities and broad system
requirements to ensure that each clause or requirement has
been implemented.
Process Audits: (In depth analysis)
- Verify the performance of the processes in accordance
with desired outcomes.
- Identify opportunities for improvement and possible
corrective actions.
- Helps to identify vulnerable, new and high-risk processes.
Product Audits: (Series of audits)
- Series of audits done at appropriate stages of design,
production and delivery to verify conformity to any specified
product requirements (Dimensions, functionality, packaging
and labelling, at a defined frequency).
Internal
quality
audit
System
audit
Process
audit
Product
audit

5. External Quality Audit
Note: The contents used in this slide is being used for academic purposes only, and is intended only for students registered in B.Tech Mechanical Engineering at AKTU Lucknow in VIII semester 2019-20, and is not intended for
wider circulation.
- External audit is essential for external certification and is
one of the most important parts of the process of
certification.
- The external ISO 9001 certification audit is the final step
before companies receive ISO 9001 certification.
- The aim of an auditor is to assess the effectiveness of the
QMS and the organization's overall performance.
- A chosen external auditor from other organization assesses
the QMS.
- Checks the relevancy of the documentation to ensure the
compliance of ISO 9001 requirements.
- Verifies whether the procedures and processes are
correctly followed.
- External auditors examine the financial records and issue
an opinion regarding the financial statements of the
company.
Thrust area
- Process approach
- Quality policy and objectives
- Progress on quality objectives
- Leadership
- Customer focus (Customer
requirements, satisfaction,
complaints etc.)
- Non-conformities
- Risk based thinking
- Improvement

6. TQM implementation in manufacturing and service sectors
Note: The contents used in this slide is being used for academic purposes only, and is intended only for students registered in B.Tech Mechanical Engineering at AKTU Lucknow in VIII semester 2019-20, and is not intended for
wider circulation.
- Manufacturing industries - Engage in the transformation of
goods, materials or substances into new products. Machines
and equipment are typically used in the process of
manufacturing.
- Service industries - Consist of utilities; wholesale trade; retail
trade; transportation and warehousing; information; finance,
insurance, real estate, rental, and leasing; professional and
business services; educational services, health care, and social
assistance; arts, entertainment, recreational etc.
- TQM practices: Best ways in which organizations and their
employees undertake business activities in all key processes [4].
- TQM: Strategy to meet or exceed customer’s requirements and
expectations.
- TQM: Seeks excellence in all aspects of business through
organization-wide continuous improvement, commitment by
all, and customer focus.
- These practices have positive impact on business results in
manufacturing and service industries.
Continuous
improvement
Focus on
customer
TQM Quality
improvement
Accurate
evaluation
Involve all
employees

7. TQM implementation in manufacturing and service sectors (Case study)
Note: The contents used in this slide is being used for academic purposes only, and is intended only for students registered in B.Tech Mechanical Engineering at AKTU Lucknow in VIII semester 2019-20, and is not intended for wider circulation.
9 major points of integrated QM
strategies (Outcomes of survey on several
manufacturing industries) [4]
1. Top management commitment
2. Customer focus and satisfaction
3. Training and education
4. Human resource management
5. Source management
6. Process management
7. Employee involvement
8. Quality system
9. Quality information and performance
measurement.
9 Major points of integrated QM
strategies (Outcomes of survey on several
service industries) [4]
1. Top management commitment
2. Customer focus and satisfaction
3. Human resource management
4. Continuous improvement and
innovation
5. Training and education
6. Employee involvement
7. Bench marking
8. Quality culture/work culture
9. Source management
Note: Sequencing is done on the basis of frequency of occurrences in 15+15 = 30 research literatures [4]

8. Note: The contents used in this slide is being used for academic purposes only, and is intended only for students registered in B.Tech Mechanical Engineering at AKTU Lucknow in VIII semester 2019-20, and is not intended for wider circulation.
Comparison of TQM practices in manufacturing and service industries [4]
TMC: Top management commitment
CFS: Customer focus and satisfaction
TE: Training and education
HRM: Human resource management
SM: Source management
PM: Process management
EI: Employee involvement
QS: Quality system
QIPM: Quality information and performance
measurement.
QC: Quality culture
WC: Work culture
CII: Continuous improvement and innovation
BM: Benchmarking
Figure 1: Comparison of TQM practices in manufacturing and service industries (Courtesy: Ref [4])
Figure 1 is based on:
- 15 published research papers in
each sector, totaling to 30
research papers that focused on
practices influencing TQM in
both the sectors.
- These studies are of different
sizes covering between 32 and
1,200 organizations.
- The studies have been carried out
in various countries such as
India, Malaysia, UK, Turkey,
Singapore, Australia and others.

9. References:
[1] https://en.wikipedia.org/wiki/Quality_audit (Accessed on 16.04.2020).
[2] International Professional Practices Framework (IPPF), The Institute of Internal Auditors Research Foundation. Florida,
USA, January 2011.
[3] https://www.iso-9001-checklist.co.uk/internal-audit-explained.htm (Accessed on 16.04.2020).
[4] Talib, F. and Rahman, Z. (2012) ‘Total quality management practices in manufacturing and service industries: a comparative
study’, Int. J. Advanced Operations Management, Vol. 4, No. 3, pp.155–176.

10. Thank you